Schaeffer's Market Observation Features AMEX Pharmaceutical Index (AMEX: DRG) And Eli Lilly (NYSE: LLY)

CINCINNATI, Nov. 19 /PRNewswire/ -- Today's Market Observation AMEX Pharmaceutical Index (Amex: DRG) and Eli Lilly (NYSE: LLY). Schaeffer's Market Observations are market-based reports that provide insight and analysis from a unique and unbiased perspective. Market Observations are published on http://www.SchaeffersResearch.com - the home of Bernie Schaeffer and Schaeffer's Investment Research. For additional information about this report or to have it delivered to you free via email every day click on the following link: http://www.schaeffersresearch.com/addinfo . (Photo: http://www.newscom.com/cgi-bin/prnh/20020725/SCHAEFFERLOGO ) Pharmaceutical Sector Could Receive Boost from Homeland Security Bill An obstacle to the passing of the Homeland Security bill winding its way through Congress was hurdled today and it paves the way for some drug companies to benefit. The U.S. Senate defeated Democratic attempts to change legislation, voting 52 to 47 in favor of retroactively expanding liability protection for vaccine producers. Democrats had sought to kill the provision along with six others they called "special interest provisions." The White House victory Tuesday morning clears the way for completion of action on the underlying Homeland Security Department. The vaccine provision would help Eli Lilly (NYSE: LLY) and other pharmaceutical companies that manufactured the mercury-based compound thimerosal, which was used to protect multi-dose containers of vaccine from contamination. LLY and others are suffering a spate of class actions lawsuits attempting to link thimerosal to autism. Also subject to thimerosal lawsuits are Aventis Pasteur, Pfizer, Merck, Abbott Laboratories, Wyeth, and Baxter International. The bill would expand litigation protection provided by the Vaccine Injury Compensation Program to include compounds administered with a vaccine, such as thimerosal. While litigants could still sue companies if they reject a settlement from the program, they are subject to a three-year statute of limitations for vaccine-related claims. The AMEX Pharmaceutical Index (Amex: DRG) is up just under one percent on the day. As my colleague noted the day after Election Day, the DRG could benefit from the Republican-controlled government. The DRG has slightly surpassed potential resistance at 311 and has set its sights on its 10-month moving average overhead at 325. Click the following link to see the Daily Chart of DRG since April 2002: http://www.schaeffersresearch.com/wire?ID=6590 . Also of note, sentiment toward the sector remains pessimistic. The Schaeffer's put/call open interest ratio (SOIR) on the sector's components is at 0.67, which is higher than 74 percent of the past year's readings. Short interest for the members of the DRG has risen in four straight months to its highest level in 18 months. The 15 stocks in the DRG have a total short interest of more than 289 million shares. If the DRG can break through resistance points on its way higher, this pessimism may provide the fuel for a continued move higher. Click the following link to see the Schaeffer's composite Put/Call Open Interest Ratio for the Pharmaceutical Sector: http://www.schaeffersresearch.com/wire?ID=6590 . About Schaeffer's Investment Research ( http://www.SchaeffersResearch.com ) Schaeffer's Investment Research, founded by Bernie Schaeffer in 1981, is a diversified financial information and trading resources company with subscribers in over 110 countries. It publishes Bernie Schaeffer's Option Advisor, the nation's leading subscription newsletter devoted to options, as well as many other educational, bulletin and alert services. The firm's website, http://www.SchaeffersResearch.com , is recognized as one of the leading information sources for stock and options traders and was cited as the top options website by both Forbes and Barron's. Contact: Tom Godich at Schaeffer's, 513-589-3800; Email, pressrelease@sir-inc.com

Issuers of news releases and not PR Newswire are solely responsible for the accuracy of the content.